Want to get ahead in the financial game in life? Get a head start by investing in real estate young.
You don’t get rich by saving a little and tucking it under your mattress. You get rich by saving a lot and then investing smartly, for high returns.
Thanks to technology, industries such as the real estate sector have evolved so much that you no longer need to break the bank to participate.
However, due to the compound effect, the younger you start buying investment properties, the longer your time horizon is to realize gains, build wealth, and create an awesome financial future.
Real estate can be a great investment if you take the time to educate yourself about the process and the best ways to get great returns. However, most people interested in buying rental properties or real estate as an investment never do so. If you don’t take the time to learn about investing in rental properties, you are missing out on a great opportunity.
The great thing about rentals is the longer you own them, the better investment they become. Plus, when you are young, you have more flexibility in life, fewer commitments, and can take more risks. If you wait too long to start investing, family, work, and life makes it hard to learn about and buy rental properties.
What is Real Estate Investment
Real estate investing involves purchasing, ownership, management, rental, and/or sale of real estate for profit.
Real Estate Investment is an excellent investment for anyone who wants to have real wealth. Before thinking about real estate, there are certain things you must consider.
* Where to invest: In Nigeria, Lagos, Abuja, and Port Harcourt are top places to invest.
* Types of real estate investment:
- The gift of Rental Property: There is a high need for residential property. People will always require shelter.
- Land Flipping
- Property Development
- Real estate investment Trust
Why Should You Start Investing in Real Estate at a Young Age
Real estate investing is all about long-term wealth generation. It is not a get rich quick scheme, and most success does not happen overnight.
There are numerous benefits available to those who start investing at a young age. Perhaps most importantly is the opportunity to start on what would become a lifelong passion. Historically, real estate has proven to be a highly lucrative investment option. Those who take the time to learn about investing early can create the foundation for a worthwhile, profitable career in life.
Thus, it’s fair to say that the earlier you start investing, the longer time you have to realize the benefits.
It’s so critical to start to develop your skillset as early as possible. Investing in real estate is typically not just something you start doing one day because you “feel” like it. It requires education and calculated decisions to be made. These things take time to acquire.
How You Can Actually Start Investing in Real Estate at a Young Age
Many young people usually say, “I don’t have a lot of money. How can I invest in real estate?”
I am telling you now that you may not have much money, but you likely have other valuable resources, such as time, energy, and determination.
I will outline different ways you can get started in real estate as a young person without much capital.
The first step towards investing in real estate is getting well educated and versed in what real estate is all about, the best place to invest.
So many people look at the rich and say, “I want to be rich like him/her,” but what they don’t ask themselves is, “Am I willing to put in the work the person has to achieve what they have?”
Educate yourself through free online material, books, or an online course, so you can learn what’s involved and then decide if real estate investing is right for you and the best way to go about it.
Once you’ve decided that real estate investing is something worth investing in, you can start the process of actually saving to invest.
Earn More and Save More
You want to invest in real estate but don’t have enough money to do so? Two great options I’ve personally used to build up some capital for myself quickly are:
* Pick up a side hustle
* Increase your savings rate
If you are super serious about investing in real estate, I advise that you do BOTH.
Find a Partner
Suppose you’re unable to invest in real estate on your own, whether due to lack of funds or experience, you can always partner with someone who has what you’re lacking. Start co-investing with people you trust.
If you are going to partner with someone, make sure that you bring plenty of value to the table. You can use your energy, time, and hustle to find the deals and have your partner fund them.
Investing in real estate is one of the fastest ways to generate long-term wealth. It is never too early to start, and starting can mean picking up a book and getting educated. The sooner you start, the sooner you can learn what it takes to be successful, the longer you have to reap the benefits. I’ve been investing for almost a decade now and wished that I had gotten started earlier.
You should not be scared away by the potential challenges of starting an investing career. Instead, learn to use your age to your advantage and start building a portfolio today. There are financing opportunities available, connections to be made, and numerous markets worth researching. Whether it is rental properties or wholesaling, there are several beginner-friendly entry points for young investors to break into real estate. With the right dedication, investing in real estate young can help you set yourself up for the life you want.